Strategy description

Sensex Daily Fly

This strategy is a systematic intraday options trading setup tailored for the Sensex Weekly Options, leveraging the Iron Fly (Iron Butterfly) structure. Designed for traders seeking consistency and controlled risk, the strategy focuses on capturing premium decay in a defined risk-reward framework.

The Iron Fly involves selling an at-the-money (ATM) call and put option while buying corresponding out-of-the-money (OTM) call and put options for protection. This creates a neutral position that profits when the underlying index remains range-bound through the trading session.

Key Highlights:

1. Type: Intraday (No overnight risk)
2. Strategy: Iron Fly (Neutral to range-bound outlook)
3. Index: Sensex Weekly Options
4. Entry Time: 9:18 AM
5. Exit Time: 3:10 PM
6. Target Profit: ₹5,000 per trade
7. Maximum Stoploss: ₹3,500 per trade

The strategy operates within a clearly defined time window—entering shortly after market open at 9:18 AM and exiting all positions before close at 3:10 PM. It is optimized for weekly options, where theta decay and short-term market behavior can be effectively harnessed within a single trading day.

This approach suits traders who prefer high-probability setups with controlled risk, especially in low to moderate volatility conditions where the index is expected to stay within a certain range.